Definition: Your credit score is a measure of the risk you pose to money lenders. It is based on a number of factors included in your credit report and is a large factor in determining both whether a lender will loan you money and the interest rate that money will be loaned out at. In general, the lower your credit score, the higher the interest rate if you are able to secure a loan. The higher your score, the better your rate.
There are a number of reputable sites that will allow you to check your credit score and monitor your credit report, including the websites of Transunion, Equifax, and Experian, for a low fee.
See Also: Credit Report
Definition: A comprehensive report on your credit history maintained by each of the credit bureaus. The credit report includes a your previous lines of credit, loans, payments (late or on-time), bankruptcies, and any recent requests for new credit. Lenders, phone carriers, employers, utility companies, and landlords may request your permission to obtain your credit report information to establish your ability to make and keep up on your obligations.
The big three credit bureaus are TransUnion, Equifax, and Experian, and each may weigh each of the factors in your credit report differently, providing differing information or different scores, which are taken into account by those who make requests for your information.
You are entitled to receive a free copy of your credit report once every 365 days. Visit the credit bureau websites to learn more.
See Also: Credit Score
For more information about your credit report, see:
The 5 Keys to Maintaining Good Credit
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